EQS-News / 18/12/2015 / 19:55 UTC+8
China New Town Invests in Danyang Xinmeng River Project
To Dig Out More Quality Investment Opportunities
through Public-Private-Partnership (PPP)
(Hong Kong and Singapore, 18 December 2015) - China New Town Development Company Limited - the future blueprint planner
and leading developer of integrated new towns in China (the "Company", "CNTD", the "Group"; HKSE: 1278.HK; SGX: D4N.SI),
is pleased to announce that the Company, on 18 December 2015, has entered into a Cooperative Investment Agreement (the
"Agreement") with Danyang Investment Group Company Limited ("Danyang Investment") and Danyang Chengtai Development
Company Limited ("Danyang Chengtai"), pursuant to which the parties shall engage in the development and operation of
Danyang Xinmeng River's extension and deepening Project (the "Project"). The Project fully illustrates the Group
continues to dig out more quality investment opportunities through the PPP model.
The Company agrees to contribute in aggregate additional capital of RMB200 million to Danyang Tiansheng Water
Conservancy Development Company Limited ("Tiansheng Water Conservancy" or the "Project Company") in the form of
registered capital to fund the Project development through its designated wholly-owned subsidiaries. Immediately
following the Capital Contribution, the Group shall be interested in an aggregate of 33.3% shares of Tiansheng Water
Conservancy, which shall then become an associate company of the Company. In addition, the Project shall enjoy a
guaranteed 12% annualized investment return quarterly during the one year investment period. At the end of the
investment period, Danyang Chengtai commits to fully purchase at par the equity stake in the Project Company held by the
Company preset return rate.
Since July 2015, the Group participated in Danyang city's water conservancy development as a private sector investor
through the PPP model, the Project has been another investment successfully launched in Danyang, representing the
extension of business based on this and benefits from the excellent relationship established between the Group and our
business partners and their recognition of the Group's contributions, as well as the evidence of the Group's
capabilities in originating new business opportunities from existing business network.
The PPP model is an emerging investment-financing model for local government, a key initiative under the support of
national policy. The Ministry of Finance and National Reform and Development Commission consecutively published policy
guidelines in support of the PPP model, while leading financial institutions, especially China Development Bank ("CDB"),
provided solid financing packages in support. Similar to the previous project, the Project is a priority infrastructure
project highly supported by Danyang Municipal Government and is supported by a dedicated project finance package by
China Development Bank. In addition, the investment returns over the project investment period is included in the
Danyang Government's annual fiscal budget, and Danyang Investment will provide joint and several liability guarantee,
thereby the investment is of high safety, as well as CDB's business presence through "investment-lending" integration.
Danyang is located right at the corridor of the Yangtze River Delta - Shanghai economic zone, and is one of the most
rapidly growing and fiscally sound economies in Jiangsu Province. The Project fully demonstrated a progressive step, as
the strategic objective of the Company being based on the Yangtze River Delta. Yangtze River Delta, one of China's
economically vibrant and potential regions in China, as well as one of the Company's target areas for business
development, contains a large number of opportunities regarding urbanization and infrastructure, bringing diversified
opportunities for the Group.
The spokesperson of China New Town Development says, "We believe the Company will continue to leverage off the business
network of CDB and China Development Bank Capital Corporation ("CDB Capital"), the Company's controlling shareholders,
to accomplish its blue print in urbanization. Therefore, the Company will significantly reduce the investment risks and
substantially enhance the investment return of the Group, with a view towards laying solid foundation for profit and
greater values for our shareholders."
End of Press Release
+++++
Document: http://n.equitystory.com/c/fncls.ssp?u=QQIFMHQFOQ
Document title: China New Town Invests in Danyang Xinmeng River Project to Dig Out More Quality Investment Opportunities
through Public-Private-Partnership (PPP)
Key word(s): Miscellaneous
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(END) Dow Jones Newswires
December 18, 2015 06:55 ET (11:55 GMT)
